UPSTATE & NYC MESSAGE  
DSS-4357EL                                                                 
WGIUPD                  GENERAL INFORMATION SYSTEM               06/01/01  
                   DIVISION:  Temporary Assistance 

GIS 01 TA/DC018                                                            
                                                                           
TO:  		Commissioners; IM Directors; FS Directors; CAP Coordinators; Staff    
     		Development Coordinators                                              
                                                                          
FROM: 	Patricia A. Stevens, Deputy Commissioner  
      		Division of Temporary Assistance                                                                                        
SUBJECT:  Changes in the Food Stamps Vehicle Resource Exemption Policy 

EFFECTIVE DATE:  06/01/01                                                  
                                                                          
CONTACT PERSON:  Eastern Regional Team at 800-343-8859, ext. 3-1469      

This is to advise Local Districts of three changes in the vehicle resource exemption policy for applicants and recipients of Food Stamps.  This GIS will be followed up with the release of an Administrative Directive.

I.	Old Policy:

     Current Food Stamp vehicle policy is to exempt:

•	The entire value of licensed vehicles used primarily to produce income, used for long distance travel essential to employment, as a home, to transport a physically disabled household member, or to carry fuel for home heating or water;
•	Leased vehicles;
•	$4,650.00 of a vehicle's fair market value for one general purpose licensed vehicle per household and additional licensed vehicles which are used by household members (or an  alien or excluded individual whose resources are being considered available to the household) to attend training or education preparatory to employment,to travel to and from employment, or seek employment in compliance with the job search requirements of the Food Stamp Program;
•	Additional licensed vehicles that the household owns are subject to the dual assessment of excess (over $4650) fair market value and full equity value.  Only the greater of the two amounts is counted as a resource.

     New Policy:

   	 Federal Food Stamp rules at 7 CFR 273.8 have been amended to expand the fair market value exemption.  Districts will now apply the fair market value exemption of $4,650.00 to: 
                                                                             
•	One licensed vehicle for each adult household member regardless of use;
•	Any licensed vehicle a household member under age 18 drives to work, school, training, or to look for work.

II.	Old Policy:

     As explained in GIS message 2000 TA/DC010, New York State obtained a waiver to exclude vehicles under the inaccessible resource provision. As a result, a vehicle was completely excluded from the resource test if the equity value of the vehicle was less than one half of the household's resource limit. Therefore, a vehicle was completely excluded from a household's countable resources if the equity value of the vehicle was less than $1,000.00 (or $1,500.00 if the household contained a member age 60 or older).

     New Policy:

     Federal Regulation 273.8 provides for the exclusion of vehicles that are likely to produce a return of $1,500.00 or less when sold.  Districts will now use this amount to determine inaccessibility of a vehicle resource for any Food Stamp household.

III.	Old Policy:

     Currently, a vehicle is completely excluded from the Food Stamp resource test if it is used primarily (over 50% of the time) for income producing purposes.

     New Policy:

     The criteria for excluding a vehicle when used for income producing purposes has been changed to include vehicles used to produce earned income (including situations where the use of one's personally owned vehicle is required for employment such as that of a courier or delivery person etc.). The requirement that the vehicle be used over 50% of the time has been eliminated.

     There have been no other changes to the criteria for complete exclusion of vehicles. All other existing exclusion criteria continue to apply (i.e. necessary to transport a physically disabled household member, leased vehicle etc.).

Temporary Assistance (TA) Implications:

The Temporary Assistance (TA) automobile exemption policy remains unchanged since the release of 00 ADM-5. Households may still own one automobile with a fair market value of $4,650.00. However, if the automobile is needed for the applicant or recipient to seek or retain employment or travel to and from work activities, the automobile exemption amount is increased to two times the amount required to be exempted from consideration in determining eligibility for Food Stamp benefits, or such other higher value as the District may elect to adopt. This means that for those households with an applicant or recipient with an automobile needed to seek or maintain employment or to travel to and from work activities, the exemption amount is $9,300.00, or a higher amount as established by the District.

Recipients of Family Assistance and Safety Net Assistance remain categorically eligible for Food Stamps.  The resources of a categorically eligible individual is not included in a household's Food Stamp resource test.